JUPITER, Fla., Feb. 23, 2011 (GLOBE NEWSWIRE) -- GelTech Solutions, Inc. (OTCBB:GLTC), creators of FireIce, a revolutionary water enhancing fire suppressant that has the potential to change current firefighting techniques globally, today announced that the Company has renegotiated its line of credit and reduced the principal on the line of credit by $1 million. GelTech's largest shareholder agreed to accept 892,857 shares of GelTech's stock in consideration for cancelling $1 million of debt under the line of credit which was due in May 2011. The remaining $1.4 million owed under the line of credit has been converted into a five year convertible note which is convertible at $1.12 per share.
In connection with the loan cancellation, GelTech issued the lender one million warrants exercisable at $1.25 per share and 300,000 warrants exercisable at $1.75 per share.
Mr. Michael Cordani, CEO, GelTech, stated, "I am delighted to report that we have removed a considerable amount of debt from our balance sheet. Converting a portion of the loan to equity and the remaining amount into a long term convertible note shows the confidence that our largest shareholder has in the long term prospects for GelTech."
Joseph Ingarra, President of GelTech stated, "This transaction brings significant value to the bottom line and has transformed our balance sheet. Accomplishing this is a very meaningful milestone for GelTech."
About GelTech Solutions:
GelTech Solutions creates innovative, Earth-friendly, cost-effective products that help industry, agriculture, and the general public accomplish environmental and safety goals, such as water conservation and the protection of lives, homes, and property from fires.
FireIce® is a patent pending fire suppressant used for direct attack of fires as well as a medium term retardant for structure protection. FireIce can be used in all types of apparatus; fire extinguishers, pumper trucks, aerial units for wildfires and home defense units for personal home protection.
For more information on GelTech, please visit: www.globenewswire.com/newsroom/ctr%3Fd=200732%26l=9%26a=http%253A%252F%252Fwww.GelTechSolutions.com%26u=http%253A%252F%252Fus.lrd.yahoo.com%252F_ylt%253DAuHOGp0ePm4FQhUDb0hXLJuliRkC%252FSIG%253D1150v51h1%252F%252A%252Ahttp%25253A%252Fwww.GelTechSolutions.com%252F">http://www.GelTechSolutions.com
To learn more about FireIce, please visit: http://www.fireice.com
Join our growing FireIce fan base at: http://www.facebook.com/FireIce911
Become a fan of our new homeowner solution at: http://www.facebook.com/FireIceHDU